| dc.description.abstract | Innovation is normally defined as the introduction of a new product to a market or the
production of an existing one in a new manner. Financial innovation represents
something new that reduces costs, reduces risks, or provides an improved
product/service/instrument that better satisfies participants' demands. This research paper
looked at looked at financial innovation as an independent variable that affects financial
performance of Deposit Taking Microfinance Institutions. The objective of the study was
to establish the effect of financial innovation on the performance of Deposit Taking
Microfinance Institutions in Kenya.
The paper explores the. theoretical and empirical review of financial innovation and
performance. Further, it looked at measures of financial innovation and financial
performance. A descriptive survey design was adopted for the study. The population
comprised all Deposit Taking Microfinance Institutions in Kenya. The study relied on
primary data where structured questionnaire was used to collect data from respondents of
each DTM. Quantitative data was coded and entered into Statistical Package for Social
Scientists. Qualitative data was analyzed based on content validity of the responses.
Based on the study findings the study concluded that product diversification and product
development are the key success factors in product innovation strategies. Likewise,
Improved and radically changed products are regarded as particularly important for long term
DTM growth and that products at the DTM have been updated and completely
renewed for retaining strong market presence. Further, the study conclude that most
organizations have adopted process innovation while process innovation is used mostly
on increasing profit, enhancing quality personnel, saving of costs and increasing
competitiveness. However, the study recommended that organization must recognize
marketing innovation to reach more customers. Also the study recommended that prior
measures to be adopted such as IT appliances to enhance organization performance. | en_US |
